“Owens Corning had a great year. The company delivered revenue growth of
six percent and achieved record levels of both adjusted EBIT and free
cash flow”

Fourth-quarter 2016 net earnings were $86 million, or $0.76 per diluted
share, compared with net earnings of $109 million, or $0.92 per diluted
share, during the comparable quarter in 2015. Fourth-quarter 2016
adjusted earnings were $81 million, or $0.72 per diluted share, compared
with $79 million, or $0.66 per diluted share, during the same period one
year ago (See Use of Non-GAAP Measures, See Table 6).

Full-year 2016 net earnings were $393 million, or $3.41 per diluted
share, compared with net earnings of $330 million, or $2.79 per diluted
share, during 2015. Adjusted earnings in 2016 were $419 million, or
$3.63 per diluted share, compared with $304 million, or $2.57 per
diluted share, during 2015.

“Owens Corning had a great year. The company delivered revenue growth of
six percent and achieved record levels of both adjusted EBIT and free
cash flow,” said Chairman and Chief Executive Officer Mike Thaman. “Our
2016 results reflect the continued improvements we have made to our
portfolio of businesses. In 2017, we expect to sustain our momentum and
deliver another year of strong performance.”

Consolidated Fourth-Quarter and Full-Year 2016
Results

Owens Corning performed at a very high level of safety in 2016, with a
recordable incident rate of 0.50, compared to 0.52 in 2015.

Reported earnings before interest and taxes (EBIT) for fourth-quarter
2016 were $136 million, compared with $138 million during the same
period in 2015. Adjusted EBIT in fourth-quarter 2016 was $157 million,
up from $136 million in 2015 (See Table 2).

Reported EBIT for full-year 2016 was $699 million, compared with $548
million during 2015. Adjusted EBIT in 2016 was $746 million, up from
$550 million in 2015.

Operating cash flow and free cash flow improved by more than $200
million each in 2016 (See Table 7). The company delivered record free
cash flow of $570 million as a result of improved earnings, strong
working capital performance, and an advantaged tax position. The
company converted adjusted earnings to free cash flow at a rate of
126% over the last two years, in excess of the prior guidance of about
100% over the years 2015 to 2018.

During fourth-quarter 2016, Owens Corning repurchased 1.4 million
shares of its common stock for $70 million. During 2016, the company
repurchased 4.8 million shares for $240 million. As of the end of
2016, 9.8 million shares were available for repurchase under the
current authorization.

The Board of Directors declared a quarterly cash dividend of $0.20 per
common share, an 11% increase compared with the same period in the
prior year. The dividend will be payable on April 3, 2017, to
shareholders of record as of March 10, 2017.

2017 Outlook

The company expects an environment consistent with consensus
expectations for U.S. housing starts and moderate global industrial
production growth.

In Composites, the company expects continued growth in the glass fiber
market, driven by moderate global industrial production growth. In
2017, the company expects a third consecutive year of record EBIT,
with growth of about $25 million primarily from improved operating
performance.

In Roofing, the company experienced strong growth in 2016 from new
construction, reroof, and storm-related demand. In 2017, the company
expects continued growth in new construction and reroof demand. This
growth is not expected to offset anticipated declines in the storm
markets, particularly Texas. The business will also benefit from the
full-year impact of the InterWrap acquisition, which was completed in
April, 2016.

In Insulation, in the second half of 2016, the company experienced
stable pricing and continued to recover its market share position in
the U.S. residential fiberglass insulation business. In 2017, the
company expects to deliver revenue growth of about $100 million with
EBIT of $160 million or more.

The company estimates an effective tax rate of 32 percent to 34
percent, and a cash tax rate of 10 percent to 12 percent on adjusted
pre-tax earnings, due to the company’s $1.8 billion U.S. tax net
operating loss carryforward.

The company expects general corporate expenses to be between $120
million and $130 million in 2017. Capital additions in 2017 are
expected to total approximately $375 million. Interest expense is
expected to be about $110 million.

Next Earnings Announcement

First-quarter 2017 results will be announced on Wednesday, April 26,
2017.

Telephone replay will be available one hour after the end of the call
through February 15, 2017. In the U.S., call 1.877.344.7529. In Canada,
call 1.855.669.9658. In other international locations, call
+1.412.317.0088.Conference replay number: 100-995-21Replay
available at http://services.choruscall.com/links/oc170208.htmlWebcast
replay available until February 8, 2018

About Owens Corning

Owens Corning (NYSE: OC) develops, manufactures, and markets insulation,
roofing, and fiberglass composites. Global in scope and human in scale,
the company’s market-leading businesses use their deep expertise in
materials, manufacturing and building science to develop products and
systems that save energy and improve comfort in commercial and
residential buildings. Through its glass reinforcements business, the
company makes thousands of products lighter, stronger and more durable.
Ultimately, Owens Corning people and products make the world a better
place. Based in Toledo, Ohio, Owens Corning posted 2016 sales of $5.7
billion and employs over 16,000 people in 26 countries. It has been a
Fortune 500® company for 62 consecutive years. For more
information, please visit www.owenscorning.com.

Use of Non-GAAP Measures

Owens Corning uses non-GAAP measures in its earnings press release that
are intended to supplement investors’ understanding of the company’s
financial information. These non-GAAP measures include EBIT, adjusted
EBIT, adjusted earnings, adjusted diluted earnings per share
attributable to Owens Corning common stockholders (“adjusted EPS”),
adjusted pre-tax earnings, free cash flow and free cash flow conversion
of adjusted earnings. When used to report historical financial
information, reconciliations of these non-GAAP measures to the
corresponding GAAP measures are included in the financial tables of this
press release. Specifically see Table 2 for EBIT and adjusted EBIT,
Table 6 for adjusted earnings and adjusted EPS, and Table 7 for free
cash flow and free cash flow conversion of adjusted earnings.

For purposes of internal review of Owens Corning’s year-over-year
operational performance, management excludes from net earnings
attributable to Owens Corning certain items it believes are not
representative of ongoing operations. The non-GAAP financial measures
resulting from these adjustments (including adjusted EBIT, adjusted
earnings, adjusted EPS and adjusted pre-tax earnings) are used
internally by Owens Corning for various purposes, including reporting
results of operations to the Board of Directors, analysis of
performance, and related employee compensation measures. Management
believes that these adjustments result in a measure that provides a
useful representation of its operational performance; however the
adjusted measures should not be considered in isolation or as a
substitute for net earnings attributable to Owens Corning as prepared in
accordance with GAAP.

Free cash flow is a non-GAAP liquidity measure used by investors,
financial analysts and management to help evaluate the company's ability
to generate cash to pursue opportunities that enhance shareholder value.
Free cash flow is not a measure of residual cash flow available for
discretionary expenditures due to the company’s mandatory debt service
requirements. As a conversion ratio, free cash flow is compared to
adjusted earnings (as explained in the preceding paragraph). Free cash
flow and free cash flow conversion of adjusted earnings are used
internally by the company for various purposes, including reporting
results of operations to the Board of Directors of the company and
analysis of performance. Management believes that these measures provide
a useful representation of our operational performance and liquidity;
however the measures should not be considered in isolation or as a
substitute for net cash flow provided by operating activities or net
earnings attributable to Owens Corning as prepared in accordance with
GAAP.

When the company provides forward-looking expectations for non-GAAP
measures (adjusted pre-tax earnings), the most comparable GAAP measures
and a reconciliation between the non-GAAP expectations and the
corresponding GAAP measures are generally not available without
unreasonable effort due to the variability, complexity and limited
visibility of the adjusting items that would be excluded from the
non-GAAP measures in future periods. The variability in timing and
amount of adjusting items could have significant and unpredictable
effect on our future GAAP results.

Forward-Looking Statements

This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934.These forward-looking
statements are subject to risks, uncertainties and other factors and
actual results may differ materially from those results projected in the
statements. These risks, uncertainties and other factors include,
without limitation: relationships with key customers; levels of
residential and commercial construction activity; competitive and
pricing factors; levels of global industrial production; demand for our
products; industry and economic conditions that affect the market and
operating conditions of our customers, suppliers or lenders; domestic
and international economic and political conditions, including new
legislation, policies or other governmental actions by the new U.S.
Presidential administration and Congress; foreign exchange and commodity
price fluctuations, our level of indebtedness; weather conditions;
availability and cost of credit; availability and cost of energy and raw
materials; issues involving implementation and protection of information
technology systems; labor disputes; legal and regulatory proceedings,
including litigation and environmental actions; our ability to utilize
net operating loss carry-forwards; research and development activities
and intellectual property protection; interest rate movements; uninsured
losses; issues related to acquisitions, divestitures and joint ventures;
achievement of expected synergies, cost reductions and/or productivity
improvements; defined benefit plan funding obligations; price volatility
in certain wind energy markets in the U.S.; and factors detailed from
time to time in the company’s Securities and Exchange Commission
filings. The information in this news release speaks as of February 8,
2017, and is subject to change. The company does not undertake any duty
to update or revise forward-looking statements except as required by
federal securities laws. Any distribution of this news release after
that date is not intended and should not be construed as updating or
confirming such information.

Owens Corning Investor Relations News

Table 1

Owens Corning and Subsidiaries

Consolidated Statements of Earnings

(unaudited)

(in millions, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

NET SALES

$

1,383

$

1,297

$

5,677

$

5,350

COST OF SALES

1,064

1,001

4,296

4,197

Gross margin

319

296

1,381

1,153

OPERATING EXPENSES

Marketing and administrative expenses

158

136

584

525

Science and technology expenses

22

20

82

73

Other expenses, net

3

2

16

7

Total operating expenses

183

158

682

605

EARNINGS BEFORE INTEREST AND TAXES

136

138

699

548

Interest expense, net

28

20

108

100

Loss (gain) on extinguishment of debt

—

—

1

(5

)

EARNINGS BEFORE TAXES

108

118

590

453

Less: Income tax expense

16

8

188

120

Equity in net earnings (loss) of affiliates

(4

)

—

(3

)

1

NET EARNINGS

88

110

399

334

Less: Net earnings attributable to noncontrolling interests

2

1

6

4

NET EARNINGS ATTRIBUTABLE TO OWENS CORNING

$

86

$

109

$

393

$

330

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS

Basic

$

0.77

$

0.94

$

3.44

$

2.82

Diluted

$

0.76

$

0.92

$

3.41

$

2.79

Dividend

$

0.20

$

0.17

$

0.74

$

0.68

WEIGHTED AVERAGE COMMON SHARES

Basic

112.8

116.2

114.4

117.2

Diluted

114.1

117.3

115.4

118.2

Table 2

Owens Corning and Subsidiaries

EBIT Reconciliation Schedules

(unaudited)

Adjusting items are shown in the table below (in millions):

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Restructuring costs

$

(20

)

$

2

$

(28

)

$

(2

)

Acquisition-related costs for InterWrap and Ahlstrom transactions

(1

)

—

(9

)

—

Recognition of InterWrap inventory fair value step-up

—

—

(10

)

—

Total adjusting items

$

(21

)

$

2

$

(47

)

$

(2

)

The reconciliation from net earnings attributable to Owens Corning
to EBIT and Adjusted EBIT is shown in the table below (in
millions):

The table below provides a summary of net sales, EBIT and
depreciation and amortization expense for the Composites segment
(in millions):

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Net sales

$

466

$

445

$

1,952

$

1,902

% change from prior year

5

%

-3

%

3

%

-1

%

EBIT

$

65

$

44

$

264

$

232

EBIT as a % of net sales

14

%

10

%

14

%

12

%

Depreciation and amortization expense

$

35

$

33

$

138

$

125

Insulation

The table below provides a summary of net sales, EBIT and
depreciation and amortization expense for the Insulation segment
(in millions):

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Net sales

$

473

$

518

$

1,748

$

1,850

% change from prior year

-9

%

6

%

-6

%

6

%

EBIT

$

43

$

70

$

126

$

160

EBIT as a % of net sales

9

%

14

%

7

%

9

%

Depreciation and amortization expense

$

28

$

26

$

106

$

101

Roofing

The table below provides a summary of net sales, EBIT and
depreciation and amortization expense for the Roofing segment (in
millions):

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Net sales

$

483

$

368

$

2,194

$

1,766

% change from prior year

31

%

8

%

24

%

1

%

EBIT

$

98

$

53

$

486

$

266

EBIT as a % of net sales

20

%

14

%

22

%

15

%

Depreciation and amortization expense

$

12

$

10

$

46

$

39

Table 5

Owens Corning and Subsidiaries

Corporate, Other and Eliminations

(unaudited)

Corporate, Other and Eliminations

The table below provides a summary of EBIT and depreciation and
amortization expense for the Corporate, Other and Eliminations
category (in millions):

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Restructuring costs

$

(20

)

$

2

$

(28

)

$

(2

)

Acquisition-related costs for InterWrap and Ahlstrom transactions

(1

)

—

(9

)

—

Recognition of InterWrap inventory fair value step-up

—

—

(10

)

—

General corporate expense and other

(49

)

(31

)

(130

)

(108

)

EBIT

$

(70

)

$

(29

)

$

(177

)

$

(110

)

Depreciation and amortization

$

26

$

7

$

53

$

35

Table 6

Owens Corning and Subsidiaries

EPS Reconciliation Schedules

(unaudited)

(in millions, except per share data)

A reconciliation from net earnings attributable to Owens Corning
to Adjusted Earnings and a reconciliation from diluted earnings
per share to adjusted diluted earnings per share are shown in the
tables below:

Three Months Ended

Twelve Months Ended

March 31,

June 30,

September 30,

December 31,

December 31,

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

RECONCILIATION TO ADJUSTED EARNINGS

Net earnings attributable to Owens Corning

$

57

$

18

$

138

$

91

$

112

$

112

$

86

$

109

$

393

$

330

Adjustment to remove adjusting items (a)

2

2

13

—

11

2

21

(2

)

47

2

Adjustment to remove tax benefit on adjusting items (b)

(1

)

(1

)

(4

)

—

(1

)

—

(5

)

—

(11

)

(1

)

Adjustment to remove significant tax reserve reversals (c)

—

—

—

—

—

—

(10

)

(27

)

(10

)

(27

)

Adjustment to tax expense to reflect pro forma tax rate (c)

4

3

4

(1

)

3

(1

)

(11

)

(1

)

—

—

ADJUSTED EARNINGS

$

62

$

22

$

151

$

90

$

125

$

113

$

81

$

79

$

419

$

304

RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS

DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS

The tax impact of adjusting items is based on our expected tax
accounting treatment and rate for the jurisdiction of each adjusting
item.

(c)

To compute adjusted earnings, we apply a full year pro forma
effective tax rate to each quarter presented. For 2016, we have used
an effective tax rate of 33%, which was our 2016 effective tax rate
excluding the reversal (recorded in the fourth quarter of 2016) of
valuation allowances against certain European net deferred tax
assets. For comparability, in 2015, we have used an effective tax
rate of 33% that excludes the reversal of a valuation allowance
recorded in prior years against certain Canadian net deferred tax
assets.